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(Individual or component costs of capitai) Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par

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(Individual or component costs of capitai) Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (tace value) and a contract or coupon interest rate of 11.8 percent. Interest payments are $59.00 and are paid semiannually. The bonds have a current market value of $1,124 and will mature in 10 years. The firm's marginal tax rate is 34 peroet. b. A new common stock issue that paid a $1.82 dividend last year. The firmis dividends are expected to continue to grow at 6.4 percent per yeas, focever. The price of the firm's common stock is now \$27. 62 c. A prelerted stock that sels for $120, pays a dividend of 9.9 percent, and has a 5100 par value d. A bond seling to yeld 12.4 percent where the firm's tax rate is 34 percent

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